Functions and CALL Routines |
Returns compound interest parameters.
-
a
-
is numeric, and specifies the initial amount.
Range: |
a 0 |
-
f
-
is numeric, and specifies the future amount
(at the end of n periods).
Range: |
f 0 |
-
r
-
is numeric, and specifies the periodic interest
rate expressed as a fraction.
Range: |
r 0 |
-
n
-
is an integer, and specifies the number
of compounding periods.
Range: |
n 0 |
The COMPOUND function returns the missing
argument in the list of four arguments from a compound interest calculation.
The arguments are related by the following equation:
![[equation]](images/deqn60.gif)
One missing argument must be provided. A compound interest
parameter is then calculated from the remaining three values. No adjustment
is made to convert the results to round numbers.
If n=0, then
and
are equal to 1.
Note: If you choose r
as your missing value, then COMPOUND returns an error. ![[cautionend]](../../../../common/63294/HTML/default/images/cautend.gif)
The accumulated value of an investment of $2000 at a
nominal annual interest rate of 9 percent, compounded monthly after 30 months,
can be expressed as
future=compound(2000,.,0.09/12,30);
The value returned is 2502.54. The second argument
has been set to missing, indicating that the future amount is to be calculated.
The 9 percent nominal annual rate has been converted to a monthly rate of
0.09/12. The rate argument is the fractional (not the percentage) interest
rate per compounding period.
Copyright © 2011 by SAS Institute Inc., Cary, NC, USA. All rights reserved.